Business payments

In our financing arrangement, a "Business payment" refers to the periodic amounts that Businesses pay back based on the terms of the agreed payment plan.

Payment calculation process

Payments are calculated on a continuous cycle, typically aligned with the Platform’s payout processes. The amount each Business needs to pay is determined as a percentage of their sales from that period, ensuring that payments adjust according to the Business’s sales performance. This percentage is agreed upon when the financing Offer is accepted.

Data transmission and payment calculation

To facilitate payment calculations, Platforms transmit Sales statements for each cycle to finmid using a unique identifier for the Business. This ensures we can accurately compute the payment due based on current sales figures.

We offer two methods for processing payments:

Option 1: Platform-managed payments

In response to the Sales statements shared with finmid, our API informs the Platform of the amount to be deducted for the payment and the commission to be retained by the Platform. Platforms deduct the agreed percentage directly from the Business’s sales before disbursing the remaining funds. We offer automated emails for accounting teams to confirm the transaction details and the amounts to be transferred to us on a regular basis (at least monthly).

post Add Sales statements to a batch

Option 2: Direct debit by finmid

Alternatively, we directly debit the payment from the Business’s bank account. This method simplifies the process for Platforms, as we handle the collection and subsequently share the commission with the Platform on a monthly basis. However, this process adds more overhead for the Business and collection risk for finmid, which increases the overall fees for the financing.

With continuous performance on payments, Businesses are eligible to renew their Funding. We will elaborate on this in the next section.